Pension warning: £500k fines in clampdown on scam cold calls

COMPANIES making nuisance pensions calls face potential fines of up to £500,000 from today.

Pension scammers stole an average of £91,000 per victim last year [FILE PIC] (Image: Tetra Images/GETTY)

Research from the Money Advice Service (MAS) suggests there have been as many as eight scam calls taking place every second, or 250 million calls a year. The consequences can be devastating. Pension scammers stole an average of £91,000 per victim last year, according to the Financial Conduct Authority (FCA). The new ban prohibits unsolicited or cold calls about pensions.

Related articles

Pension scams, which can lead to people losing their life savings, often start with a cold call. If someone is contacted out of the blue about their pension, there is a high risk it is a scam.

Potential warning signs include offers of "free pension reviews", high-pressure sales tactics, complex investment structures where it is not clear where your money will end up, and promises of too-good-to-be-true returns.

Exceptions include where the caller is authorised by the FCA, or is the trustee or manager of an occupational or personal pension scheme, and in cases where the recipient consents to calls, or has an existing relationship with the caller.

John Glen, Economic Secretary to the Treasury, said: "Pension scammers are the lowest of the low.